Major stock markets in Asia traded in a mixed session after China reported a decline of Chinese factory activity in March, while commodity prices edged lower as the Biden’s administration is reportedly considering a plan to release its strategic oil reserve.
As of 10:15 local time in Thailand on March 31, 2022, Nikkei dropped 0.18%, SSEC slipped 0.21%, Hang Seng Index fell 0.80%, ASX 200 rose 0.33% and IDX Composite increased 0.37%.
Thailand’s SET Index opened at 1,700.28 points, increased 1.88 points or 0.11%.
This morning, Chinese factory activity slipped in March as the country has been battling the resurgence of Covid-19 outbreak, especially in major cities like Shenzhen and Shanghai.
The Chinese official manufacturing Purchasing Managers’ Index for March came in at 49.5, lower than the reading of 50.2 in February and 49.8 expected. Meanwhile, Official non-manufacturing PMI comes in at 48.4, compared to 51.6 in February.
Meanwhile, oil prices plunged more than 6% in the morning session on Thursday as the Biden’s administration is reportedly considering a plan to release its strategic oil reserve of 1 million barrels per day for about six months.
The international benchmark Brent crude dropped 4.72% to $108.10 per barrel, while West Texas Intermediate fell 5.87% to $101.49 per barrel.
Mr. Koraphat Vorachet, Capital Nomura Securities’ strategist, through “Kaohoon Jor Talad Program” on March 31, 2022, stated that the Thai stock market could move in sideways trends due to the situation in Ukraine after the report of Russian troops retreating, but the U.S. said that the troops in Donbas remains packed.
Meanwhile, a decrease in commodity prices is due to the report of Russia willingly to let Germany purchase its energy using euros.
Thus, the strategist expected the SET Index to move up and down in today’s session, giving a support level at 1,680 points and a resistance level at 1,705-1,713 points.
